ACCA Strategic Professional · Strategic Business Leader · Finance transformation
Dunmore Retail plans to move its payroll and receivables processing to an SSC. A director warns of a significant risk that is specific to the change itself rather than to ongoing operation. Which risk is this?
The key change-specific risk is disruption and loss of knowledge during transition, as experienced local staff leave or resist the move and processing errors or delays arise. Economies of scale, consistent processes and better management information are intended benefits of a shared service centre, not risks.
- ADisruption and loss of knowledge during transition, as experienced local staff leave or resist the changeCorrect
- BThe ability of the SSC to achieve economies of scale in processing
- CGreater consistency of processes across the group
- DImproved management information from a single system
Explanation
Transition risk arises from staff resistance, redundancy and loss of process knowledge while work is moved, which can cause errors and service failures. The other options are intended benefits of an SSC, not risks of the change.
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